Liberty’s parent company touts reverse performance ahead of annual shareholder meeting
Ocwen Financial Corporation (NYSE:OCN), parent company of PHH Mortgage Corporation and its wholly-owned subsidiary Liberty Reverse Mortgage, announced this week that it will hold its annual meeting of shareholders on May 25, 2022 at 9:00 a.m. EST. In its announcement, the company provides details about its financial performance over the past year and offers a positive outlook on the specific performance of its reverse mortgage business, according to a filing with the Securities and Exchange Commission (SEC ).
Ocwen is committed to further diversifying its portfolio, a commitment that was underscored in two key acquisitions completed in 2021, the filing said.
“Ocwen made two key acquisitions in 2021 to further strengthen and diversify its origin and service platforms: the company acquired the correspondent lending business of Texas Capital Bank in June 2021 and the service platform reverse of Reverse Mortgage Solutions, Inc in October 2021,” the filing reads.
RMS buys a “highlight” for Ocwen in 2021
The acquisition of the service platform Reverse Mortgage Solutions (RMS) was also highlighted as a key event for Ocwen in the previous year.
“[The company] completed the acquisition of Reverse Mortgage Solutions, Inc.’s reverse mortgage services platform, roughly doubling our portfolio of reverse mortgage services, becoming the industry’s only end-to-end reverse mortgage provider and creating a reverse sub-service platform,” the company said.
The filing also offered reverse-related activities as reasons for its leadership team’s accomplishments, including for CEO Glen Messina, Executive Vice President and Chief Services Officer Scott Anderson, Executive Vice President and Chief growth George Henley and administrative director Dennis Zeleny.
While Messina is credited for leading diversified investments that include reverse mortgage businesses, Zeleny is the executive with the most reverse-related accomplishments on the management team according to the document.
“[Zeleny] recorded double-digit growth in direct and reverse originations and improved refinancing rates,” the document states. “[He also] integrated the correspondent lending business acquired from Texas Capital Bank and restructured the correspondent sales team into an enterprise-wide sales model to increase our coverage of direct, reverse and commercial.
Zeleny also “exceeded quality targets or defect rates” on recovery and return channels; and helped improve promoter net scores in both direct and reverse wholesale to consumer segments, the document states.
Earlier this year, Ocwen announced that in 2021 it posted its first annual profit since 2013, but a decline in profits in the fourth quarter. The company also views its current and future interests in the reverse mortgage business through Liberty and its acquisition of RMS as a critical driver of its operations.
Ocwen’s Confidence in Sub-Services Portfolio Strengthened by Purchase of RMS
In particular, the acquisition of RMS appears to have bolstered the company’s confidence in its total sub-services portfolio, and the company described favorable conditions in its origination business, particularly with Liberty versus its portfolio of term mortgages in its annual results. call.
“We are excited about our reverse sub-service platform,” Ocwen CFO June Campbell said on the earnings call. “This uniquely positions our reverse service business for accelerated growth this year. [W]We expect $11 million in higher reverse mortgage revenue from onboard and committed volume this year, $25 billion of UPB’s $27 billion is under a five-year sub-service agreement years. With scale and an optimized cost structure, we expect the acquisition to be accretive to our reverse service business in the second half of the year, reaching $5 million in adjusted pretax earnings in the fourth quarter.
Ocwen announced the acquisition of RMS in June 2021 in a deal valued at approximately $12.4 million. The deal closed a few months later in October 2021. Shortly after the purchase, RMD spoke with Liberty President Mike Kent, who described what buying the platform from RMS service will do for the lender’s ability to serve its reverse mortgage customers.
“[This sale] provides us with the ability and opportunity to provide superior and consistent end-to-end customer service to our borrowers and partners,” Kent told RMD in June 2021. “PHH/Liberty is a customer-centric organization. Our goal is to always view our service offering through the lens of our customers and continually strive to provide solutions to meet their needs. Aligning our origination business with our reverse service business will enable better retirement outcomes for our borrowers. »